The rise in Euribor is causing a significant gap in the economy of families paying floating rate mortgages. This comes as a result of a survey conducted by the Valencian Community Consumers’ Association that revealed: there are increases in mortgage payments of up to 300 euros per monthprompts those affected to consider reducing spending on things like entertainment or clothing.
According to the data obtained, 10.4% of the respondents stated that they had to deal with increases between 200 and 300 euros in the last revision, 18.8% with increases between 100 and 200 euros, and 50% of those under 100 euros. Considering the development of Euribor in recent months, they expect a higher wage increase, although 20.8% do not know the exact amount as the investigation has not been done yet.
These increases, underlined by the Consumers Union, have prompted most respondents to consider reorganizing their budgets to deal with mortgage loans. For this reason, 47% of the respondents declare that they will reduce their restaurant and entertainment expenditures, and 45% will reduce their expenditure on clothing, accessories and souvenirs.27% will unsubscribe from television platforms, gym and private lessons, and 15% will unsubscribe from food.
Income
In addition to reducing costs, Another option that citizens are considering is to increase family income.although 55% stated that they did not know how to do it. The rest plan to take certain measures, such as looking for a second job in 13% of cases, splitting payments to have 11% more monthly liquidity, and renting out the parking lot or warehouse of the house in 7%.
On the other hand, respondents do not trust banking institutions.. Therefore, when asked what solutions they would like to ask from their banks, 61% said they did not think of making any demands because they did not believe it would help them, 21% said they wanted to limit their interest rates and stop earning that much, 12% that reduced the difference and 6% that improved conditions without paying commissions.
Given these results, Vicente Inglada, general secretary of the Valencia Community Consumers’ Union, considers it necessary for the Administration to take efficient measures aimed at facilitating access to housing. Possibility of reversing the tax deduction that was eliminated in 2013 or reclaiming the financial product of the housing accountsamong others.